MISX:MGTS

Stock Analysis Report

Moscow City Telephone Network

Executive Summary

Public Joint Stock Company Moscow City Telephone Network provides Internet, television, home phone, mobile connection, security, smart house, and various home services in Russia.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Moscow City Telephone Network's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGTS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

MGTS

4.5%

RU Telecom

2.3%

RU Market


1 Year Return

17.5%

MGTS

19.1%

RU Telecom

28.8%

RU Market

Return vs Industry: MGTS underperformed the Russian Telecom industry which returned 19.1% over the past year.

Return vs Market: MGTS underperformed the Russian Market which returned 28.5% over the past year.


Shareholder returns

MGTSIndustryMarket
7 Day4.0%4.5%2.3%
30 Day8.3%9.9%6.8%
90 Day7.8%9.4%14.5%
1 Year31.8%17.5%27.9%19.1%37.8%28.8%
3 Year275.5%150.6%82.7%40.8%67.2%40.7%
5 Year862.7%395.2%118.6%52.6%161.2%103.0%

Price Volatility Vs. Market

How volatile is Moscow City Telephone Network's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Moscow City Telephone Network undervalued compared to its fair value and its price relative to the market?

13.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGTS (RUB2030) is trading above our estimate of fair value (RUB1587.68)

Significantly Below Fair Value: MGTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGTS is poor value based on its PE Ratio (13.3x) compared to the Telecom industry average (10.9x).

PE vs Market: MGTS is poor value based on its PE Ratio (13.3x) compared to the Russian market (8.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGTS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGTS is overvalued based on its PB Ratio (2.6x) compared to the RU Telecom industry average (1x).


Next Steps

Future Growth

How is Moscow City Telephone Network forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Moscow City Telephone Network has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Moscow City Telephone Network performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGTS has high quality earnings.

Growing Profit Margin: MGTS's current net profit margins (30.8%) are higher than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: MGTS's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: MGTS's earnings growth over the past year (33.4%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: MGTS earnings growth over the past year (33.4%) underperformed the Telecom industry 145.9%.


Return on Equity

High ROE: MGTS's Return on Equity (22.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Moscow City Telephone Network's financial position?


Financial Position Analysis

Short Term Liabilities: MGTS's short term assets (RUB27.8B) do not cover its short term liabilities (RUB35.9B).

Long Term Liabilities: MGTS's short term assets (RUB27.8B) exceed its long term liabilities (RUB20.6B).


Debt to Equity History and Analysis

Debt Level: MGTS's debt to equity ratio (2.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MGTS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MGTS's debt is well covered by operating cash flow (1121.9%).

Interest Coverage: MGTS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MGTS has a high level of physical assets or inventory.

Debt Coverage by Assets: MGTS's debt is covered by short term assets (assets are 18.3x debt).


Next Steps

Dividend

What is Moscow City Telephone Network's current dividend yield, its reliability and sustainability?

11.15%

Current Dividend Yield


Dividend Yield vs Market

company11.2%marketbottom25%3.3%markettop25%7.9%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MGTS's dividend (11.43%) is higher than the bottom 25% of dividend payers in the Russian market (3.39%).

High Dividend: MGTS's dividend (11.43%) is in the top 25% of dividend payers in the Russian market (8.33%)


Stability and Growth of Payments

Stable Dividend: MGTS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MGTS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (152%), MGTS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Moscow City Telephone Network's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Vladislav Alexandrovich 0

0yrs

Tenure

0

Mr. Vladislav Medvedev Alexandrovich serves as Chief Executive Officer at Public Joint Stock Company Moscow City Telephone Network since November 2019 and served as its Director since 2019. He serves as Ch ...


Management Age and Tenure

5.9yrs

Average Tenure

Experienced Management: MGTS's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

0.6yrs

Average Tenure

46yo

Average Age

Experienced Board: MGTS's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eduard Sharay

    Deputy Director General of Chief Financial Officer

    • Tenure: 11.9yrs
  • Ivan Nikitin

    Director of Legal Support

    • Tenure: 11yrs
  • Dmitriy Kuakovskiy

    Director of Marketing and Product Development

    • Tenure: 5.9yrs
  • Viktor Durygin

    Member of the Collegial Executive Body

    • Vladislav Piotrovskiy

      Member of the Collegial Executive Body

      • Sergey Zubkov

        Member of the Collegial Executive Body

        • Aleksandr Trochin

          Deputy General Director and Technical Director

          • A. Nazarov

            Sales & Maintenance Director and Member of Management Board

            • Tenure: 1.6yrs
          • Nikolay Pozhidayev

            Chief Financial Officer

            • Tenure: 0.6yrs
          • Vladislav Alexandrovich

            Chairman of Management Board


            Board Members

            • Andrey Ushatsky (45yo)

              Director

              • Valery Shorzhin (56yo)

                Director

                • Vyacheslav Nikolaev (47yo)

                  Director

                  • Tenure: 0.6yrs
                • Inessa Galaktionova (45yo)

                  Director

                  • Tenure: 0.6yrs
                • Alla Chugunova

                  Member of Audit Committee

                  • Kirill Dmitriev (41yo)

                    Director

                    • Igor Yegorov (51yo)

                      Director

                      • Tenure: 0.6yrs
                    • Andrey Kamensky (47yo)

                      Director

                      • Tenure: 0.6yrs
                    • Alexey Katkov (42yo)

                      Chairman

                      • Tenure: 0.6yrs
                    • Pavel Kuznetsov

                      Director

                      • Tenure: 0.6yrs

                    Company Information

                    Public Joint Stock Company Moscow City Telephone Network's company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Public Joint Stock Company Moscow City Telephone Network
                    • Ticker: MGTS
                    • Exchange: MISX
                    • Founded: 1882
                    • Industry: Integrated Telecommunication Services
                    • Sector: Telecom
                    • Market Cap: ₽165.794b
                    • Shares outstanding: 79.71m
                    • Website: https://www.mgts.ru

                    Location

                    • Public Joint Stock Company Moscow City Telephone Network
                    • Building 1
                    • ul. B. Ordynka, 25
                    • Moscow
                    • 119991
                    • Russia

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    MGTSMISX (Micex - Rts)YesCommon StockRURUBFeb 1995
                    MGTSPMISX (Micex - Rts)RUB40(RUB)RURUBApr 1996

                    Biography

                    Public Joint Stock Company Moscow City Telephone Network provides Internet, television, home phone, mobile connection, security, smart house, and various home services in Russia. The company was founded in 1882 and is based in Moscow, Russia. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/19 21:17
                    End of Day Share Price2020/01/17 00:00
                    Earnings2019/06/30
                    Annual Earnings2018/12/31


                    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.